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Minimum Wage History

Was the minimum wage enough to live on? See the US federal minimum wage adjusted for inflation, and what minimum wage workers could actually afford in any year since 1938.

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Hours worked per week

Minimum wage

Per hour

Weekly earnings

Annual earnings

Before tax

In 2024 dollars

Inflation adjusted annual

What could a minimum wage worker afford in ?

Full minimum wage history (inflation adjusted to 2024)

Year	Nominal wage	Annual (nominal)	Annual in 2024$	Peak vs today

Data: US Department of Labor, Wage and Hour Division. Inflation adjustment via BLS CPI-U. Housing and food prices from BLS Consumer Expenditure Survey and US Census Bureau.

About US minimum wage

When was the US minimum wage at its highest in real terms?

The federal minimum wage peaked in real (inflation-adjusted) terms in 1968, when $1.60/hour was equivalent to approximately $14.00 in 2024 dollars. The current federal minimum wage of $7.25 (set in 2009, now 15+ years without an increase) is significantly lower in real purchasing power than its 1968 peak.

Why has the minimum wage not kept up with inflation?

The federal minimum wage requires an act of Congress to increase. It has been raised only 22 times since 1938. Long periods without adjustment allow inflation to erode its real value. Many states have higher minimum wages than the federal floor. As of 2024, 29 states and Washington DC have minimums above $7.25.

Could a single person live on minimum wage in 1970?

In 1970, the minimum wage was $1.60/hour, equivalent to about $13.30 in 2024 dollars. Working 40 hours per week yielded roughly $3,328 per year (nominal), equivalent to about $27,780 in 2024 purchasing power. A one-bedroom apartment cost a national median of around $108 per month. Housing was genuinely affordable on a minimum wage in most US cities in 1970.